On 30 June 2026, the Government issued Decree 253/2026/ND-CP detailing a number of articles and measures for the organization and implementation of the Law on Personal Income Tax.
Some notable points are as follows:
1. Tax exemption for salaries and wages for night work, overtime work, and salaries and wages paid for unused leave days
– Personal income tax exemption applies to salaries and wages for night work and overtime work at the workplace, in accordance with the conditions and working-time requirements prescribed by labor law.
– Personal income tax exemption applies to salaries and wages paid for unused leave days, in accordance with the conditions and salary/wage levels paid for unused leave days as prescribed in Clause 3, Article 113 of the Labor Code and the provisions of the Law on Cadres and Civil Servants and the Law on Public Employees.
– Where salaries and wages for night work, overtime work, or salaries and wages paid for unused leave days exceed the statutory limits, the excess shall be included in the individual’s taxable income.
Effective date: From 1 January 2026 (Clause 1a, Article 69)
Transitional provisions:
Cases where tax has been declared and paid on employment income for the 2026 tax period during the period from 1 January 2026 to before the effective date of this Decree, in accordance with personal income tax regulations applicable before the effective date of this Decree, are not required to re-submit monthly or quarterly tax declaration dossiers, but shall make adjustments in the 2026 annual tax finalization dossier. (Clause 2, Article 70)
2. Change to the tax-exempt cap for mid-shift meals and lunches
Amounts paid by employers to employees for mid-shift meals and lunches in excess of VND 1.2 million/person/month shall be included in taxable income. Where the employer provides mid-shift meals or lunches to employees in forms such as directly cooking meals, purchasing meal portions, or issuing meal vouchers, such amounts shall not be included in the individual’s taxable income.
Effective date: From 1 July 2026 (Clause 1b, Article 69)
3. Change to the tax withholding threshold for casual income
Organizations and individuals paying salaries, wages, remuneration, or other payments to resident individuals who do not sign a labor contract or who sign a labor contract of less than 03 months (including cases of paying salaries or other income to employees whose labor contracts have been terminated), where each payment is VND 5 million or more, must withhold tax and remit the withheld tax at the rate of 10% on the income before paying it to the individual. Where each payment is below VND 5 million, the paying organization or individual may withhold tax at the rate of 10% if requested by the individual.
Effective date: In accordance with Clause 1, Article 69
Original document:
- 📄 Download Decree 253/2026/ND-CP dated 30 June 2026 issued by Government: here
